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Abstract
Within the reformed CAP, Germany decided to support small and young farmers by higher
hectare payments. Because of heterogeneous farm structures with smaller farms in the south
and large in the east, this causes regional redistributions. Agent-based simulations show that
these policies create incentives for small farms to continue production but cannot provide
perspectives. As small farms compete usually with other smaller farms additional support
fulminates in small farm dominated regions in higher land prices and a structural
conservation. Moreover, large farms are not harmed by reduced payments as they mainly
compete with other large farms which are equally affected.